Firm Capital Mortgage increases offering to $25-million

Executive Summary

• Firm Capital Mortgage Investment Corp. has upsized its previously announced bought deal offering of convertible unsecured subordinated debentures, increasing the aggregate principal amount to $25 million, with an overallotment option for an additional $3.75 million.
• The debentures are priced at $1,000 each, bear interest at 5.50% per annum, and are convertible into common shares at a price of $14.06 per share.
• Net proceeds will be used for debt repayment and general corporate purposes, with the offering expected to close on or about October 14, 2025.

Key Details

• Transaction Structure: Bought deal offering of convertible unsecured subordinated debentures.
• Underwriters: Syndicate bookrun by CIBC Capital Markets and TD Securities.
• Base Offering Size: $25-million aggregate principal amount.
• Overallotment Option: Up to $3.75-million additional aggregate principal amount, exercisable in whole or in part until 30 days following closing.
• Total Potential Gross Proceeds: $28.75-million (if overallotment is exercised in full).
• Price: $1,000 per debenture.
• Interest Rate: 5.50% per annum, payable semi-annually in arrears on June 30 and December 31.
• Interest Commencement: December 31, 2025.
• Maturity Date: December 31, 2032.
• Conversion Price: $14.06 per common share, subject to adjustment.
• Conversion Option: Holder's option to convert at any time prior to the close of business on the earlier of the maturity date or the business day preceding the redemption date.
• Redemption Terms:
  • Not redeemable before December 31, 2028.
  • December 31, 2028, to December 31, 2030: Redeemable at par plus accrued interest if weighted-average trading price is not fewer than 125% of the conversion price over 20 consecutive trading days.
  • On and after December 31, 2030: Redeemable at par plus accrued interest at the corporation's option.
• Use of Proceeds: Debt repayment and general corporate purposes.
• Closing Date: Expected on or about October 14, 2025.
• Regulatory Filings: Prospectus supplement to be filed by no later than October 8, 2025, under the short form base shelf prospectus dated July 29, 2024.
• Ranking: Direct, unsecured obligations, subordinated to senior indebtedness, ranking pari passu with existing convertible unsecured subordinated debentures.
• Alternative Settlement: Corporation has the right to repay principal and pay interest through the issuance of shares.

Notable Quotes

• None provided in the text.